Kraft Heinz Plans $20B Grocery Business Spin-Off: Report

The spin-off will result in the two separate units being worth more than Kraft Heinz’s roughly $31 billion market value currently.

raft Heinz products including, Tomato Ketchup, HP Sauce, Beanz, Hoops and Tomato Soup are displayed during the Brand Licensing Europe at ExCel on October 04, 2023 in London, England. (Photo by John Keeble/Getty Images)

Ananya Mariam Rajesh·Stocktwits

Published Jul 11, 2025 | 2:45 PM GMT-04

Add us on

Kraft Heinz (KHC) is reportedly planning to spin off a large chunk of its grocery business, including many Kraft products, into a new entity that could be valued at as much as $20 billion on its own.

The other company would be housing goods such as sauces and spreads like Heinz’s namesake ketchup and Dijon mustard brand Grey Poupon, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Kraft Heinz shares rose 1.3% in midday trading. The retail sentiment around the stock improved to ‘neutral,’ compared to the ‘bearish’ a day ago, according to Stocktwits data.

The report added that the hope is for the two separate units to cumulatively be worth more than Kraft Heinz’s current market value of around $31 billion.

A split could be finalized in the coming weeks, according to The Wall Street Journal. However, Kraft Heinz has discussed other scenarios with its advisers, and its board hasn’t signed off on a final decision.

The company is also still working through exactly which brands would be part of the spun-out entity, the report said.

The spin-off comes at a time when demand for Kraft Heinz items has slowed in tandem with the broader packaged food industry, which is currently facing cost-sensitive customers paring back due to the price hikes undertaken over the years.

Deal-making in the sector has also increased recently, with Italian confectionery maker Ferrero Group set to buy WK Kellogg (KLG) in $3.1 billion deal, and chocolate company Mar looking to acquire Kellanova (K) in a deal worth about $36 billion.

Kraft Heinz was formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Holding Corp, engineered by 3G Capital and Berkshire Hathaway. Kraft, known for household staples such as Velveeta and Philadelphia Cream Cheese, had split from Mondelez International in 2012 to focus on U.S. grocery products.

Heinz, famed for its ketchup, had been acquired by the same investors two years earlier. The merger created the third-largest food and beverage company in North America, combining over 200 iconic brands under a single roof.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Walgreens Shareholders Approve $10 Billion Take-Private Offer By Sycamore Partners